Netflix, Inc. : Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Netflix, Inc.

01/20/2012| 07:30pm US/Eastern

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Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/nflx) announces that a class action lawsuit has been filed in United States District Court for the Northern District of California on behalf of purchasers of the common stock of Netflix, Inc. ("Netflix" or the "Company") (NASDAQ: NFLX) between December 20, 2010 and October 24, 2011, (the "Class Period").

For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at rmaniskas@rmclasslaw.com or visit: www.rmclasslaw.com/cases/nflx.

The Complaint alleges that Netflix and certain of its officers and directors violated federal securities laws. Specifically, defendants failed to disclose the following: (1) Netflix had short-term contracts with content providers and defendants were aware that the Company faced the choice of renegotiating the contracts in 2011 at much higher rates or not renewing them at all; (2) content providers were already demanding much higher license fees, which would dramatically alter Netflix's business; (3) defendants recognized that Netflix's pricing would have to dramatically increase to maintain profit margins given the streaming content costs they knew Netflix would soon be incurring; and (4) Netflix was not on track to achieve the earnings forecasts for 2011.

On October 24, 2011, Netflix reported a net loss of 810,000 U.S. subscribers and, disclosed in a subsequently filed Form 10-Q, that Netflix's obligations for content over the coming years had skyrocketed to $3.5 billion, with $2.8 billion due within three years. On this news, Netflix stock plunged from $118.84 on October 24, 2011 to $80.86 on October 27, 2011.

If you are a member of the class, you may, no later than March 13, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.

For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/nflx or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at rmaniskas@rmclasslaw.com. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.

Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.

Ryan & Maniskas, LLP
Richard A. Maniskas, Esquire
484-588-5516
877-316-3218
www.rmclasslaw.com/cases/nflx
rmaniskas@rmclasslaw.com

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